Luna Classic
Terra Classic (LUNC) and Its Revolutionary 0.5% Burning Tax: A New Era of Cryptocurrency Stability

In the tumultuous world of cryptocurrencies, a new development is drawing the attention of investors and enthusiasts alike. Terra Classic (LUNC), a coin that has risen from the ashes of the Terra Luna collapse, is implementing a burning tax of 0.5%, stirring the crypto community. The implementation of this tax burn is perceived as a pioneering move to bring stability to the cryptocurrency while stimulating its value.
The Story Behind Terra Classic
Terra Classic (LUNC) was born out of the downfall of Terra Luna in early 2022. This collapse, which marked one of the most challenging periods for cryptocurrency traders, known as “crypto winter”, generated shockwaves throughout the industry. Post-collapse, Do Kwon came up with a plan to restore the ecosystem, giving birth to Terra 2.0. The original blockchain, now known as Terra Classic (LUNC), was left without its algorithmic stablecoin, thus marking a new era for this digital asset.
The 0.5% Burning Tax
The decision to implement a 0.5% burning tax came about as a way to address the surplus of LUNC supplies that has worried the community since the market crash in May. The world’s largest crypto exchange, Binance, has announced its support for the Terra Classic network upgrade to increase the LUNC burn tax from 0.2% to 0.5% as per Proposal 11515 passed by the community. Binance CEO Changpeng “CZ” Zhao is in agreement with this move, which comes in response to the dwindling LUNC price.
The mechanism of this tax burn involves a 0.5% fee on all on-chain Terra Classic transactions, including wallet and smart contract interactions. The revenue from this tax will be used to burn LUNC tokens, effectively reducing the total supply over time. However, it’s important to note that trades on some exchanges may not be subject to this tax.
Implications and Reception
The introduction of the burning tax is expected to have significant implications for Terra Classic and the broader crypto market. By reducing the supply of LUNC, the tax aims to increase the token’s value. This idea has been met with considerable enthusiasm within the crypto community, driving a surge in LUNC’s price by as much as 200%.
While the burning tax has received favourable feedback, leading to the strong performance of LUNC, it has also triggered a short-term bearish outlook due to the token entering overbought territory. However, the increase in LUNC’s social volume suggests that more traders are paying attention to current events, potentially leading to more Terra Classic accumulation and a smaller drop in price due to the introduction of a powerful incentive for long-term HODLing.
Despite the challenges associated with making on-chain transactions more expensive, the crypto community seems to be leaning more towards accepting this deflationary price. As more investors grow open to the network, LUNC may enter a strong accumulation phase, making it an intriguing prospect for those interested in the future of cryptocurrency.
The introduction of a 0.5% burning tax by Terra Classic (LUNC) represents a novel approach to maintaining stability and increasing the value of a cryptocurrency. The success of this initiative could potentially influence future strategies in the ever-evolving landscape of digital currencies.
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. CoinReporter.io and EUReporter.co does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
AI
Former Binance CEO CZ Predicts AI Will Ditch Fiat for Crypto as Preferred Currency

Singapore, April 14, 2025 – Changpeng Zhao (CZ), the former CEO of Binance, has stirred the financial world with a bold prediction: artificial intelligence (AI) systems will abandon fiat currencies in favor of cryptocurrencies. Speaking at a blockchain conference in Singapore, CZ emphasized the unique attributes of crypto that align with AI’s operational needs, signaling a potential paradigm shift in how digital economies function.
“AI doesn’t think like humans—it’s logical, borderless, and efficient. The currency AI’s gonna use isn’t fiat; they’re gonna use crypto,” CZ declared, highlighting crypto’s decentralized nature, instant transaction capabilities, and global accessibility. He argued that fiat systems, burdened by slow cross-border settlements and regulatory constraints, are ill-suited for AI-driven economies where speed and autonomy are paramount. For instance, stablecoins like USDT, which processed $53 trillion in on-chain transactions in 2024 according to Visa, offer the kind of frictionless, programmable money that AI systems could leverage for seamless microtransactions.
CZ’s comments come at a time when AI and blockchain integration is gaining momentum. AI systems managing supply chains, smart contracts, or decentralized finance (DeFi) platforms increasingly require currencies that operate 24/7 without intermediaries. Bitcoin, with its $1.7 trillion market cap as of March 2025, and Ethereum, which powers most DeFi applications, are prime candidates. CZ pointed to Ethereum’s layer-2 solutions, which have reduced transaction fees by 90% since 2023, as an example of crypto’s scalability for AI use cases.
The former Binance chief also noted the growing trend of tokenized assets—real-world assets like real estate or commodities digitized on blockchains—which AI could use for efficient resource allocation. BlackRock’s tokenized fund, launched in 2024, has already seen $2 billion in inflows, underscoring the mainstream adoption of such technologies. “AI will manage tokenized economies, and crypto is the native currency for that,” CZ added.
However, challenges remain. Regulatory uncertainty, particularly in the U.S., where the SEC has yet to clarify stablecoin classifications, could hinder adoption. Additionally, crypto’s energy consumption—Bitcoin mining alone consumed 121 TWh in 2024, per Digiconomist—raises concerns for AI systems prioritizing sustainability. Despite these hurdles, CZ remains optimistic, citing advancements like Ethereum’s proof-of-stake transition, which cut its energy use by 99.95%.
CZ’s vision aligns with broader market trends. With global crypto adoption reaching 562 million users in 2024 (Crypto.com), and institutional players like Metaplanet acquiring $26.3 million in Bitcoin this month, the infrastructure for AI-crypto synergy is solidifying. As AI continues to reshape industries, CZ’s prediction may herald a future where digital currencies become the backbone of autonomous, intelligent systems.
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